Ford slashes full-year forecast as sales in China crash
New York — Ford on Wednesday reported lower quarterly profits and slashed its full-year forecast, citing increased incentive spending in North America and lower sales in China.
Earnings in the third quarter came in at $425m, down 57.1% from the year-ago period. Revenues fell 1.8% to $37bn.
The company scored higher operating profits in North America despite slightly lower volumes. But it suffered operating losses elsewhere, including in China where the vehicle market has slowed considerably.
The company is midway through a major "redesign" that has involved phasing out low-selling sedans in the US, cutting thousands of jobs in Europe and shifting to an "asset light" business model that involved ending production at a Brazil factory.
Moody's downgraded Ford's credit rating in September to "junk" status, citing the company's weak financial outlook as it embarks on an ambitious restructuring.
But Ford CEO Jim Hackett touted the measures, saying "we are getting stronger today and we have more work to do".
Shares fell 2.6% to $8.97 in after-hours trading.